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The National Cabinet met today to discuss Australia’s COVID-19 response, the Victoria outbreak, easing restrictions, helping Australians prepare to go back to work in a COVID-safe environment and getting the economy moving again.
The Acting Chief Medical Officer, Paul Kelly, provided an update on the measures underway, the latest data and medical advice in relation to COVID-19.
There have been over 13,000 confirmed cases in Australia and sadly 139 people have died.
The Victorian outbreak has meant that there are now around 4,000 active cases in Australia. Daily infection rates have remained low in all states and territories, other than Victoria. Testing remains high, with more than 3.7 million tests undertaken in Australia.
National Cabinet discussed the Victorian outbreak, the health response underway and recommitted to providing as much support as necessary to Victoria. All states and territories welcomed the support that the Australian Defence Force (ADF) is providing, with more than 3,100 personnel assisting with planning and logistics, testing, quarantine and control points across the country. The ADF is there to work with state and territory health responses as needed.
National Cabinet agreed to a new set of data and metrics to ensure that the Commonwealth, states and territories all have access to transparent up-to-date jurisdictional data on contact tracing, tracking and other metrics to ensure health system capacity. This will better help guide the public health response and support the coordination of efforts by the Commonwealth, states and territories.
National Cabinet recommitted to the suppression strategy for COVID-19, with the goal of no community transmission, and to the Three-Step Framework to a COVID-safe Australia. National Cabinet further recommitted to the need to adequately integrate the emergency and the health response.
We need to continue to have the right controls in place to test more people, trace those who test positive and respond to local outbreaks when they occur. These are Precedent Conditions to enable Australia to relax baseline restrictions and enable Australians to live and work in a COVID-safe economy.
Treasury Secretary Dr Steven Kennedy addressed National Cabinet and provided an economic update, including the economic and fiscal update delivered by the Treasurer this week, and the extension of the JobSeeker and JobKeeper programs. Combined with the health response, the Commonwealth economic and balance sheet measures total around $300 billion and along with the response from the state and territories of $42 billion, significant economic support is flowing into the economy. The national goal of job creation was reaffirmed with a discussion on the positive reduction in the effective unemployment rate seen from April to June.
National Cabinet will meet again on 7 August 2020.
Suppression Strategy
National Cabinet recommitted to the suppression strategy to address COVID-19. The goal remains suppression of COVID-19 until a point in time a vaccine or effective treatments are available, with the goal of no local community transmission.
National Cabinet further reaffirmed the need to adequately integrate the emergency and the health response is vitally important that the coordination of efforts continues. While this is largely occurring, National Cabinet agreed to work to strengthen these efforts, noting the support the ADF is able to provide and the need to coordinate emergency management, policing and health responses.
Streamlining environmental approvals for job-creating projects
The National Cabinet agreed to move to single-touch environmental approvals underpinned by national environmental standards for Commonwealth environmental matters.
Some states are able to transition to this system faster than others. The Commonwealth will move immediately to enter into bilateral approval agreements and interim standards with the states that are able to progress now.
We will simultaneously be developing formal national standards through further public consultation.
The National Cabinet also endorsed the list of 15 major projects for which Commonwealth environmental approvals will be fast-tracked.
For major projects at the start of the approvals process, we will target a 50 per cent reduction in Commonwealth assessment and approval times for major projects, from an average of 3.5 years to 21 months.
For major projects which are already at an advanced stage of assessment, governments will seek to progress them through the process as fast as possible and within statutory timeframes.
Joint assessment teams will work on accelerating these projects, which are worth more than $72 billion in public and private investment and will support over 66,000 direct and indirect jobs.
Transport
National Cabinet considered and agreed a Domestic Border Control Freight Movement Protocol to allow freight to move safely and efficiently across borders, and to upgrade the Protocol to an Enforceable Code by state and territory jurisdictions.
The Protocol was developed between all jurisdictions with the involvement of members of the Transport and Infrastructure Council and had previously been endorsed by the AHPPC.
National Cabinet also agreed that further work be carried out by jurisdictions on the implementation and enforcement of an industry code which, in-conjunction with the Protocol, will minimise risks and exposure to workers and the community from COVID-19.

The Greens have described today’s Economic and Fiscal Update as a plan based on austerity and fantasy projections that will lead to ongoing high unemployment.
The figures released by the Treasurer today exposed the urgent need for debt-financed public infrastructure and public services such as ongoing free childcare that will help get us into full employment, not more tax cuts for the wealthiest fifteen per cent of income earners.
“The government is choosing to lock in a high unemployment future. Their unwillingness to invest in job creation is clear in the update released today, which assumes unemployment will remain officially at 9%, even if restrictions are lifted in Q2 2021,” Greens Leader Adam Bandt said.
“This is a forecast based on austerity and wishful thinking. If restrictions aren’t lifted within the givernment’s optimistic timeframe, people will be out of work even longer.
“If government debt is as affordable as the Treasurer says, there should be a plan for full employment.”
“By investing in nation-building and planet-saving projects, we could guarantee a job for everyone who wants one, but instead the government is choosing a high-unemployment future.
“A World War II sized deficit requires a World War II response to get people into meaningful, secure jobs.”
“The cost of servicing Australia’s projected debt remains less than 1% of GDP with interest repayments well below what they were for most of the Hawke/Keating government in the 1990s.
“The trickle-down orthodoxy of tax cuts and austerity in the October Budget will only make the crisis worse.”
“The Australian Greens Invest to Recover Plan released early in the crisis outlines what we need to do to dig our way out of the economic hole we are in.”
“We should be ensuring that anyone who wants a job can get a job. We can get people to work creating public assets that will last generations, like building 500,000 publicly owned homes to wipe out housing waiting lists, building green infrastructure, and investing in the businesses and technologies we need to create a green manufacturing renaissance.”
Comments from Greens’ Treasury spokesperson Peter Whish-Wilson:
“Using public debt wisely is crucial to good economic management. The Australian Greens are the only political party putting forward a plan that most economists are calling for. We need to use the cheapest debt in history to build long-lasting public infrastructure and create jobs”, Peter Whish-Wilson said.
“Scott Morrison and Anthony Albanese should tear a page out of their John Curtin and Robert Menzies’ history books. Those Prime Ministers used record high debt levels of 120% of GDP during and after World War II to create a full employment economy of between 1% and 3% unemployment. It was so successful that Australians weren’t “paying this debt off for generations”, but rather after a decade, public debt was reduced to pre-war levels and the deficit was gone within six years.”
“Australia’s debt to GDP ratio is still low compared to most developed countries and there is plenty of room for the government to move.”
“Today’s Economic Statement by the Treasurer lays out the problem, but he isn’t offering up any type of solution. The Liberal government’s “Tax-Breaks-As-Usual” and lack of real investment will never create a lasting economic recovery,” Whish-Wilson said.

Comments from Greens Immigration spokesperson Senator Nick McKim on New Zealand’s decision to grant asylum to Behrouz Boochani:
“New Zealand granting asylum to Behrouz Boochani shows what true compassion from a government looks like, and shows Australia’s polices up for the cruel and dangerous disgrace that they are.”
“This is bittersweet news. Behrouz is free at last but so many others remain in exile or in prison. We have stolen their hope and their dreams, and it’s time to give them back.”
“The strength of Behrouz’s resistance never wavered, and his humanity and integrity triumphed every time over the brutality he endured at Australia’s hands.”
“Today is his vindication.”
“While we celebrate his freedom, we recommit to fighting for those remaining in exile, and those imprisoned in Australia.”
“New Zealand has welcomed Behrouz, and stands ready to welcome hundreds more. Surely now is the time.”

The Economic and Fiscal Update released today shows the impact of the COVID-19 pandemic on our nation’s finances as well as the scale of the support that has been provided to prepare our health system and cushion the blow for millions of households and businesses.
The Government has acted swiftly and decisively to provide economic support for workers, households and businesses of around $289 billion or the equivalent of 14.6 per cent of GDP.
This necessary and unprecedented level of economic support, coupled with declines in taxation receipts of $31.7 billion in 2019‑20 and $63.9 billion in 2020‑21, has significantly impacted the budget position.
Payments variations, including in demand driven programs, also increased by $15.7 billion, predominantly as a result of the impact of the COVID-19 pandemic on the economy.
The underlying cash balance is forecast to decrease from balance in 2018-19 to a $85.8 billion deficit in 2019-20 and a $184.5 billion deficit in 2020-21.
Through the Government’s strong fiscal management, Australia entered the COVID-19 crisis in a position of economic and fiscal strength. We returned the budget to balance for the first time in 11 years which underpinned the capacity to respond to this unprecedented shock.
Our fiscal support is targeted, timely and temporary to ensure that it does not undermine the structural integrity of the Budget with all three major credit ratings agencies having now reaffirmed Australia’s AAA credit rating during the pandemic.
The economic support in response to the COVID-19 pandemic is estimated to have increased the level of real GDP by around ¾ per cent in 2019-20 and around 4¼ per cent in 2020-21. The fiscal measures are also estimated to have lowered the peak of the unemployment rate by around 5 percentage points.
Debt levels have increased significantly as a result of the COVID-19 pandemic, however Australia continues to have a low level of debt-to-GDP compared to other countries. Net debt is expected to be $488.2 billion (24.6 per cent of GDP) at 30 June 2020 and increase to $677.1 billion (35.7 per cent of GDP) at 30 June 2021. Once the economic recovery is established, stronger growth and an improvement in the fiscal position will help to stabilise government debt as a share of the economy.
Despite the support to the economy from the measures the Government has taken, real GDP is forecast to have fallen sharply in the June quarter by 7 per cent. However, the easing of health restrictions in line with the health advice is expected to deliver an increase in economic activity from the September quarter and beyond.
There are some positive early signs in the recovery with indicators suggesting that the unwinding of containment measures in the latter part of the June quarter has led to a noticeable recovery in activity and jobs.
Household consumption is expected to lead the recovery with strong growth in the September quarter, while business and dwelling investment are expected to recover more gradually.
On a calendar-year basis, real GDP is predicted to grow by 2½ per cent in 2021, after a fall of 3¾ per cent in 2020.
Through no fault of their own, as a result of the pandemic around 709,000 jobs were lost across the country in the June quarter.
The unemployment rate is forecast to peak at around 9¼ per cent in the December quarter although labour market conditions are expected to strengthen beyond 2020.
The economic and fiscal outlook remains highly uncertain. The Government will provide forecasts and projections over the forward estimates period and medium term in the 2020-21 Budget, to be delivered on 6 October 2020.
ECONOMIC SUPPORT
The Government’s swift and decisive response, made possible by our strong budget position leading into the crisis, has saved lives and livelihoods and has seen Australia outperform most advanced economies and trading partners in health and economic outcomes in 2020.
This unprecedented economic response has been designed to be temporary and targeted with measures to support individuals, households and businesses through the crisis, without undermining the structural integrity of the budget.
This includes the $85.7 billion JobKeeper Payment, expanded eligibility for income support payments, the Coronavirus Supplement, support payments for households, temporary cash flow support for employers, and increasing and expanding access to the instant asset write-off.
More than 960,000 businesses and not-for-profits and more than 3.5 million individuals have been covered by the JobKeeper Payment. As at 16 July, payments totalled over $30 billion.
On Tuesday, we confirmed the Government’s commitment to the recovery and reopening of the economy with the extension of the JobKeeper Payment and Coronavirus Supplement for those on income support.
The Boosting Cash Flow for Employers measure has provided more than $16 billion in payments to more than 750,000 employers across Australia as at 16 July 2020.
As part of our economic plan we are also investing $2 billion to give hundreds of thousands of Australians access to retraining and upskilling in sectors with job opportunities, as the economy recovers from COVID-19.
This investment includes our $1 billion JobTrainer Fund, jointly funded with the states and territories, to provide up to an additional 340,700 training places to help school leavers and job seekers access short and long courses. We are also expanding and extending the Supporting Apprentices and Trainees wage subsidy which has supported around 83,000 apprentices and trainees, and around 48,000 employers. As at 16 July 2020, payments totalled $377.6 million.
Our HomeBuilder program is assisting the residential construction industry by encouraging the commencement of new home builds and substantial rebuilds this year. Over the month of June, sales of new houses rose by nearly 80 per cent.
Families, farmers, business owners and communities are being supported as they recover from the devastating bushfires of 2019-20 through the $2 billion National Bushfire Recovery Fund.
HEALTH SUPPORT
The Government has committed $9.4 billion to build capacity and capability to support the health response to the COVID-19 pandemic. The Government has prioritised the protection of Australians, including vulnerable groups such as the elderly and those with chronic conditions from COVID-19.
The Government has helped protect the health of Australians through the urgent purchase of Personal Protective Equipment (PPE) and other essential equipment for the National Medical Stockpile. The Government is also investing in finding a vaccine and treatments for COVID-19, as well as better preparing for future pandemics.
The Government has boosted Australia’s testing capacity to meet the challenge of the COVID-19 pandemic, including by establishing dedicated Medicare-funded pathology tests and dedicated respiratory clinics, with coverage of around 97 per cent of the population.
The Government is also providing $3.7 billion to build our hospital system capacity for the COVID-19 response, including the National Partnership Agreement on COVID-19 to fund half of the costs incurred by the states and territories in diagnosing and treating patients with COVID-19 and minimising the spread of the disease as well as the partnership to harness private hospital capacity.
In addition, over 6.7 million people have downloaded the Government’s COVIDSafe App, which helps support health workers in their contact tracing.
To ensure access to essential health services, the Government has enabled whole-of-population Medicare subsidised telehealth services and provided $619.1 million to support bulk billing and
$54.8 million for additional support to enable GPs to continue to provide essential face-to-face medical services.
The Government has also provided $122.1 million to support the mental health and wellbeing of Australians during the COVID-19 pandemic.
In addition to the National Partnership Agreement on COVID 19, the Government is investing $131.4 billion in Commonwealth funding for Australia’s public hospitals, an increase of 30 per cent over the previous five years, through the 2020-25 National Health Reform Agreement.
The Government is also providing $18.3 billion in new and existing funding over the next five years to ensure quality pharmaceutical services through the Seventh Community Pharmacy Agreement.
The Government will continue to do what it takes to deliver the essential services on which Australians rely and to ensure a strong recovery.
The Economic and Fiscal Update is available via budget.gov.au